Gary Votapka, Mission Oaks president and chief executive . “We are making progress with our problem assets and expect further improvement in the months ahead. The local economy is still very fragile but some of our customers’ businesses are improving. News), whose principal subsidiary is Mission Oaks National Bank, announced unaudited financial results for the second quarter ended June 30, 2011.
In the second quarter, the Company reported a net loss of $536,000, or $0.05 per share, compared to a net loss of $3,216,000, or $0.72 per share, for the same period a year earlier. In the first six months of 2011, Mission Oaks lost $1.70 million, or $0.16 per share, compared with a net loss of $3.88 million, or $0.87 per share, in the corresponding 2010 period.
The earnings decline was primarily attributed to additional contributions to loan loss reserves, which totaled $389,000 in the second quarter and $1,319,000 year-to-date. That compares to provisions for loan losses of $2,169,000 in the same quarter and $2,405,000 in the year-to-date results a year ago.
The Company benefitted from the settlement of a lawsuit that resulted in a one-time gain of $398,000 in the second quarter of 2011. In addition, the company took a one-time expense of $365,000 for the closure of its Ontario branch office in the second quarter of 2010.
As of June 30, 2011, the Company had total assets of $147.0 million, down $39.3 million, or 21.1 percent, over what was reported a year ago. Total deposits at the end of the second quarter were $131.3 million, an 18.1 percent decline from the same period a year earlier.
Non-interest bearing demand deposits at end of the second quarter of 2011 totaled $28.2 million, representing 21.5 percent of total deposits. A year ago the Company had $29.9 million in non-interest bearing demand deposits, or 18.7 percent of total deposits. The Company’s gross loan portfolio declined to $102.5 million at the end of the second quarter of 2011, a decrease of 17.2 percent from the same date a year ago.
The Company had foreclosed real estate totaling $4.8 million as of June 30, 2011...Four parcels totaling $1.4 million are presently in escrow to be sold at no anticipated additional loss. At the end of the second quarter of 2011, non-accrual loans totaled $14.8 million, which represented 14.4 percent of total loans compared to non-accrual loans of $13.5 million a year earlier, which represented 10.8 percent of total loans. All loans delinquent 90 days or more were on non-accrual as of June 30, 2011 and 2010.
The allowance for loan losses totaled $4.4 million at the end of June 2011, or 4.29 percent of total loans. That compares with a $4.5 million allowance for loan losses, or 3.61 percent, a year ago.
The Bank’s Tier I Capital Ratio as of June 30, 2011 was 9.30 percent and its Total Risk Based Capital Ratio was 13.96 percent. These ratios are above the 9 percent mandatory Tier 1 Capital Ratio and the 12 percent Total Risk Based Capital Ratio targets set by the Bank’s regulators.
“2011 so far, has seen positive momentum,” said Gary Votapka, Mission Oaks president and chief executive . “We are making progress with our problem assets and expect further improvement in the months ahead. The local economy is still very fragile but some of our customers’ businesses are improving. We have also made more loans in the first half of 2011 then we did in all of 2010.”
Mission Oaks National Bank is a federally chartered community bank that is committed to serving consumers and businesses in Southern California. OB.
For more on Mission Oaks National Bank visit its Web site at missionoaksbank.com.
Certain statements in this press release, including statements regarding the anticipated development and expansion of Mission Oaks’ business, and the intent, belief or current expectations of Mission Oaks, its directors or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, the Bank's performance, regulatory matters and those discussed in filings by the Bank with the Office of the Comptroller of the Currency and by Mission Oaks with the Federal Reserve Board.
Mission Oaks National Bank
Gary Votapka, President and Chief Executive Officer
Keith Johnson, Executive Vice President
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